 An organization, usually a corporation, chartered

by a state or federal government, which does most

or all of the followings: receives demand deposits
and time deposits, honors instruments drawn on
them, and pays interest on them; discounts notes,
makes loans, and invests in securities; collects
checks, drafts, and notes; certifies depositor's
checks; and issues drafts and cashier's checks.
 Engaging in the business of keeping money
for savings and checking accounts or for
exchange or for issuing loans and credit etc.

 Transacting business with a bank; depositing

or withdrawing funds or requesting a loan
etc.
A multinational corporation (or
transnational corporation) (MNC/TNC) is a
corporation or enterprise that manages
production establishments or delivers
services in at least two countries
Multinational banks (MNBs), by definition, are
those that physically operate in more than
one country.

For instance, Citibank operates offices in

more than 90 countries around the world
International banks engage in cross-border
operations and do not set up operations in
other countries.

A Bank of America loan to a bank in Poland is

considered international banking.
 Top ten banking groups in the world ranked by shareholder
equity ($m)
 Regulatory environment

 Technological Changes

 Financial Innovation

 Growing diversity

 Economies of scale
 What is an organizational Structure??

The way in which a firm has arranged its

lines of authority and communication, and
allocated duties and responsibilities; the
structure may be of a divisional, geographic
or functional kind or some combination of
these.
 An informal linkage between banks and
different countries is set up when bank
maintain correspondent accounts with each
other.
 Facilitate international payments and

collection for customers.

 Correspondent --- Mail or Cable

communications
STATE BANK OF INDIA BANK OF AMERICA

A/C OF STATE
A/C OF BANK BANK OF
OF AMERICA INDIA
 To provide their customers help from their
own personnel on the spot in foreign
countries
 These are not offices for accepting deposits

and loans
 To provide information about local business

practice and conditions – creditworthiness of

local customers
 These are small and appearance of an

ordinary office rather than a bank

 An agency is like a full fledge bank in every
respect except that it does not accept
deposits.
 Deals in local money markets, foreign

exchange markets, arrange loans, clear bank

drafts/cheques and channel foreign funds in
to financial markets.
 Arrange long term loans for customers.
 Foreign banks are operating banks like local
banks except that the director and owners
tend to reside elsewhere.
 Local banking rules and rules at home.
 Books are incorporated with parent bank.
 Fast clearance of cheques
 A foreign subsidiary is a locally incorporated
bank that happen to be either completely or
partly by a foreign parent.

 Foreign subsidiaries do all type of banking

business
 Consortium banks are joint venture of larger
commercial banks .
 Primarily concerned with investment ,

arrangement of loans and underwrite stock

and bonds.
Source: Report on trend and progress of banking in India 2006-07, RBI
publication
Source: Report on trend and progress of banking in India 2006-
07, RBI publication